Mark (Accountant) (23 Points)
25 December 2019I have tried to compute the Breakeven sales for a workshop, but my answer appears to be incorrect. I have used Goal Seek in Excel and get a higher breakeven sales. I have use fixed costs/the contribution margin, to compute my breakeven sales
It would be appreciated if someone would kindly assist me so I can see where I have gone wrong. I have attached sample data
Mark
(Accountant)
(23 Points)
Replied 27 December 2019
resolved my problem in computing the estimated Net Profit using data tables.
My Breakeven was 100% but I was getting an incorrect answer when computing forecasted Net Profit based on increased sales data when using a data table.
My Contribution margin was 27.1111% (GP %)
To resolve the problem regarding the incorrect forecasted net profit , I set my variable costs to be Sales * (1-0.271111) and now I get correct forecasted net profit
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